Lessons from my father

As I celebrated a relaxing Father's Day, I thought of my father and of that famous insight about fathers from Mark Twain.

As I celebrated a relaxing Father’s Day, I thought of my father and of that famous insight about fathers from Mark Twain. “When I was a boy of 14,” the writer said, “my father was so ignorant I could hardly stand to have the old man around. But when I got to be 21, I was astonished at how much the old man had learned in seven years.”

Like the young Mark Twain, there was a time when I thought that my dad didn’t “get it” either.

After all, how could an old guy in his mid-40s understand the complexities of being a teenager?

Then I grew older and came to realize just how much my father understood. Most of all, he understood people and he knew how people should conduct themselves.

By his actions, he instilled in his four children the need to respect others and the importance of treating people fairly.

Some of that sense of fairness may have come from his work.

My dad was a certified public accountant who served as a vice president at then-Chase Manhattan Bank, handling international fraud. He possessed an insatiable appetite for news, diving into at least four newspapers a day, including the American Banker.

Needless to say, when I landed this job, my dad added InvestmentNews to his reading list. He delighted in reading it, critiquing it and sending me notes about what could have been done differently (translation: better).

It was my dad who first introduced me to the idea of using a financial adviser. In 1982, I was out on my own and working as a newspaper reporter, making $13,000 a year. I was also doing freelance writing, earning an extra $3,000.

My dad knew I was saving for a new car, one that didn’t require an oil change every time I stopped for gas. He suggested I meet with a financial professional who could help me attain some of my short-term goals. (My dad also mentioned long-term goals, but at age 22 I took that to mean my plans for the weekend.)

I listened to my father and met Harry, an adviser at then-Prudential Securities. Looking back, I realize it was some of the best advice my dad could have given to his young son.

Thanks to my dad and, of course, Harry, who never wants me to use his last name in print, I have a solid individual retirement account, a fixed annuity and 529 college plans for my both of my kids.

In addition, there are the custodial accounts my dad opened for each of his six grandchildren. His plan was for my sisters and me to use the money for our kids’ college education when the time came.

My dad passed away two summers ago. I miss him very much, especially for his patience and the calm way he was able to teach me things by talking with me, not at me.

I have heeded the financial guidance he gave me, and try to pass it along, spending a great deal of time discussing financial matters with my son, Andrew, who is 17, and my daughter, Kaitlyn, 14.

Andrew is off to college in August, and we have taken the time to outline all the money matters associated with his college plans. He knows what tuition will cost over the next four years and how much I can contribute from the 529 account.

Andrew is also aware of how much he will be responsible for after he graduates, and we have created a four-year game plan with Harry’s assistance.

As I reclined in my hammock on Father’s Day, smoking a cigar and drinking a cold beer, I raised my glass to thank my dad for being such a great guy. Maybe, because of him, my teenage kids will come to think I wasn’t so ignorant after all.

Jim Pavia is editor of InvestmentNews.